Business Model Innovation Capability: A Game Changer for Sustaining a Firm’s Edge

Abstract

AbstractDeveloping business model innovation capability is a game changer which allows companies to stay at the top of their game in a rapidly changing world. To maintain their firm’s competitive edge, managers must continuously evaluate the extent to which there is a fit between their company’s business model, market needs, and the external environment. In this chapter, we are proposing a three-phase, interrelated, and mutually reinforcing process framework for building a business model innovation capability. When carried out repeatedly and mindfully over multiple business model innovation initiatives, the process enables managers to build their firm’s business model innovation capability. Our chapter highlights the strategic role of design as a cornerstone for building a firm-level capability, not just as a practical tool for innovation. It also provides practitioners with an actionable framework for business model innovation.